On 10/1/05, Astros Co lends $350,000 to the company batting practice pitcher at an annual interst rate of 7.2%. This act of graciousness will allow the batting practice pitcher to purchase a new spring training condominium. Terms of the loan require the batting practice pitcher to repay Astros Co with two hundred (200) equal monthly payment, the first of which is to be made on 11-1-05.
1) interest factor (rounded to 5 places) used to compute the equal monthly payment
2) amount fo the equal monthly payment
3) total amount of interest collected by Astros Co over the 200 payments
4) balance of the loan immediately after receiving the 12th payment on 10/1/06
5) balance of the loan immediately after receiving the 180th payment on 10/1/20
6) total amount of interest earned by Astros Co between the dates 10/1/06 and 10/1/20
CLUE MUST MATCH: The sum of the answers 4 & 5 is approximately $395,308
Please find the full loan table attached. The difference between the calculated sum of 4 & 5, and the one quoted in the problem is due to rounding errors.
The solution is in excel format to show calculations of interest factor, amount fo the equal monthly payment, total amount of interest collected , balance of the loan immediately after receiving the 12th payment , total amount of interest earned